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The Review of Economics and Statistics Vol. 71 No. 4 1989

Profit Incentives and Technical Efficiency in the Production of Nursing Home Care

John A. Nyman1; Dennis L. Bricker2,3

1 Health Policy and Management · 2 University of Minnesota · 3 Twin Cities Orthopedics

Abstract

In recent years, nursing home care expenditures have approached one percent of GNP. Their growth is a major contributor to the escalating costs of health care. In this article, the authors analyze a sample of nursing homes from Wisconsin to determine the characteristics of the efficiently operated nursing homes. Data envelopment analysis is used to calculate efficiency scores for the various nursing homes in the sample. The authors then use regression analysis to investigate the determinants of efficiency, holding constant the characteristics of the output. They find that for-profit firms have significantly higher efficiency scores.

DOI
10.2307/1928100
Volume
71
Issue
4
Pages
586
Sources
openalex crossref

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